Cisco Systems allegedly defrauded of $1 million

San Jose-based Cisco Systems Inc., the world’s largest maker of computer networking equipment, was allegedly defrauded of $1 million by four employees of a Minnesota company that bought and sold new and used Cisco equipment, federal authorities said.

The workers allegedly conspired to submit fraudulent service contract claims to receive Cisco parts with retail values of $5,000 to $35,000, the U.S. attorney’s office in San Francisco said. The workers then sold the equipment and deposited the payments in the Edina, Minn.-based company’s account, prosecutors said.

The four Minnesota residents were charged with conspiracy to commit mail fraud and wire fraud, and aiding and abetting.